Typically, the last six weeks of the year are more expensive than the prior 46 weeks, and you spend more money than you save. So, if you don’t go into this season without a spending plan, you’ll end up paying more than you intended.
The annoying thing about holidays and money is that if you defend your spending with “it’s okay, it’s the holidays,” it’s not okay. Spending money in excess frequently results in debt.
SAVE MONEY ON EXPENSIVE PARTIES:
After Thanksgiving, your focus shifts to everything between Giving Tuesday and New Year’s Day. Don’t forget the bottles of wine you’ll bring to the hosts of various gatherings and the extra nights of take-out when the holidays zap your will to cook another dinner.
In a regular year, it’s not uncommon for a family to spend an extra $500-$1,000 on food, and with meat prices at an all-time high, expect to add another 10% to the budget this year.
So, look for in-store deals and purchase store brands instead of name brands when shopping for food and drinks.
BUDGET SPENDING ON GIFTS:
Make a list of every person who will receive a gift. Then, write down how much you plan to spend on each person. The practice gains traction when it becomes part of your total holiday spending plan.
You don’t want to spend the entire amount you set aside for each person. Instead, your goal is to find an item for less than that amount.
It may seem rational to spend the same amount on people, but this is a waste of money that has no real impact.
CHARITY: TO GIVE OR NOT TO GIVE:
The generous spirit appears to grow enormously as the days of the year pass. Is it a sense of belonging? Sometimes.
However, regardless of the purpose, it soon adds up when combined with food, drink, vacation, and gifts.
The objective is to enjoy the holiday season without regretting it later. The most effective approach is using a plan and a budget.
5 TIPS TO SAVE MONEY ON HOLIDAY SPENDING THIS YEAR:
For those of you who are ordered list driven, here are five tips to save money on your holiday spending this year:
- Create a budget for the money you can spend this year – To avoid overspending, establish a spending budget for this year and stick to it
- Make a holiday shopping list – Make a list of everyone you’re going to buy gifts for and the amount you will spend on them while staying within your budget.
- Avoid using credit cards and bring cash – Credit cards are convenient, but spending cash avoids debt in the New Year.
- Look for sales – Comparison shopping on the internet is a fantastic tool, and you avoid long lines in crowded stores.
- Start early and save money for next year – Prepare for next year by putting some money aside. For example, create a holiday savings account and set aside a monthly contribution amount.
Expenses associated with the season of giving are a significant source of stress during the holidays. Now is a perfect opportunity to plan so that you can enjoy the holidays without feeling overwhelmed.